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Real Estate > Chapter 1 - The Real Estate Business > Flashcards

Chapter 1 - The Real Estate Business Flashcards

1
Q

A real estate licenses is a professional who provides specialized service and expertise in the following 5 areas:

A
  1. Details of property transfer
  2. Knowledge of market conditions
  3. Knowledge of how to market real estate or businesses
  4. Knowledge of how to analyze buyers needs
  5. Knowledge of laws that pertain to real estate
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2
Q

What is involved in property transfer?

A

Transrs of titles, property taxes, financing, and local zoning ordinances; knowledge of real estate purchase and sale contract used

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3
Q

What is market condition?

A

Changes in income tax laws, building moratoriums, and fluctuations in supply and demand that affect property values

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4
Q

What is farm area?

A

Staying specific to an area to have an expertise in that particular portion

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5
Q

What is the most prevalent and most well known component of real estate brokerage?

A

Sales

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6
Q

What are the the 5 major sales specialties real estate sales associates can become involved in?

A
  1. Residential
  2. Commercial
  3. Industrial
  4. Agricultural
  5. Businesses
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7
Q

What is included in residential sales?

A

Four or fewer residential units, vacant land zoned for four or fewer residential units, or agricultural property of ten or fewer acres

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8
Q

What in included in commercial sales?

A

Income- producing properties, investment analysis, and the various techniques for increasing after-tax cash flow; examples include improved residential property of more than four units, retail stores, office buildings, and shopping centers

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9
Q

What is included in industrial sales?

A

Sites in industrial parks or subdivisions, redeveloped industrial parcels in central areas, and industrial acreage

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10
Q

What is included in agricultural sales?

A

Agricultural property of more than ten acres

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11
Q

What is included in business sales?

A

Sales or lease of an existing business, including the sale of tangible and intangible assets
Also known as business brokers or business opportunity brokerage

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12
Q

What is follow up and why is it important?

A

What a sales associate does for buyers and sellers after the sale; it ensures satisfied buyers and sellers

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13
Q

What is property management?

A

Leasing, managing, marketing, and overall maintenance or property for others

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14
Q

What is an absentee owner?

A

Property owner who does not reside on the property and who often relies on a professional property manager to manage the investment

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15
Q

What is appraisal?

A

Process of estimating the value of real property; considered to be an art, not a science, because although the appraisal process involves mathematical calculations, appraisers also use their own judgment when appraising real property

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16
Q

What is the FREAB?

A

The Florida Real Estate Appraisal Board - they regulate state certified, licensed, and trainee appraisers

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17
Q

What is a real estate licensee?

A

A person paid to handle other peoples properties

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18
Q

What is a CMA?

A

Comparative market analysis; it helps potential sellers determine an asking price and buyers to make an informed decision when offering to purchase real property

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19
Q

How are CMAs developed?

A

By collecting information concerning real estate activity in the area, including recent sales of similar properties, properties currently offered for sale, and expired listings

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20
Q

Appraisers are paid a ________, not a ___________.

A

Fee, commission

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21
Q

What is a subdivision plat map?

A

Engineers plan for land use superimposed on a map of the he land to be developed

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22
Q

What is dedication?

A

Gift of land by an owner or developer to a government body for a public use ( roads, sewers, etc)

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23
Q

What do restrictive covenants do?

A

Affect how the land can be used and establish criteria such as minimum square footage, type of construction, architectural design, etc. To ensure that homes built there conform to the neighborhood

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24
Q

Developer Bob acquires a tract of land that he divides into 25 home sites. Prior to marketing the home sites, Bob must submit the subdivision plat to the:

A

Local governmental planning agency

25
Q

The term follow-up refers to:

A

What a sales associate does for buyers and sellers after the sale

26
Q

Even though certain exceptions apply, an active real estate licensee is legally entitled to appraise real property for compensation concerning a non federally related transaction as long as:

A

She does not represent herself as a state-certified or licensed appraiser, and complies with the USPAP

27
Q

The field of property management has experienced growth and specialization primarily because of:

A

The increase in the number of absentee owners

28
Q

Appraising is considered to be:

A

An art

29
Q

Appraisers are paid a fee because:

A

To accept compensation based on the appraised value is a conflict of interest

30
Q

When a developer makes lots available for custom building in a newly developed subdivisions, the overall purpose of restrictive covenants is to ensure that custom-built homes will:

A

Not decrease the value of neighboring properties

31
Q

The real estate activity that is devoted to leasing, managing, marketing, and overall maintenance of property for others is referred to as:

A

Property management

32
Q

Which type of construction involves building for a specific buyer to his or her specifications?

A

Custom Homes

33
Q

The term dedication as it applies to development and construction refers to:

A

A gift of land by the owner to the local government for public use

34
Q

Sales associate Harry recently began working at All Action Realty. All Action is not a member of the local association of Realtors. Can Harry join the association?

A

No, Harry cannot join the association unless All Action Realty joins the association

35
Q

Residential real estate is defined in Chapter 475, F.S., as:

A

Vacant land zoned for four or fewer residential units

36
Q

The real estate profession requires:

A

Skill and experience in real estate values, specialized service, and expertise

37
Q

Selecting a limited geographical area in which a real estate professional develops special expertise is referred to as:

A

Farming

38
Q

Broker Mike charges a prospective seller $50 for a comparative market analysis (CMA). Is this allowed?

A

Yes, provided Mark does not represent the CMA as an appraisal

39
Q

The duties of a property manager include all except:

A

Selling the property

40
Q

Which is the most important issue for a broker acting as a property manager to accomplish?

A

To get maximum income while preserving the value of the investment

41
Q

The real estate industry makes up about ____% of the nation’s economy.

A

25%

42
Q

It is unethical for an appraiser to accept compensation for performing an assignment when it is contingent upon:

A

The reporting of a pre-determined result

43
Q

The act of appraisal can be completed by:

A

An appraiser following the USPAP standards

44
Q

The practice of a real estate sales associate specializing in a certain geographic area is called:

A

Farming

45
Q

Which would not usually be involved in financing real estate:

A

A real estate broker

46
Q

Services that a property manager must perform for the owner are listed in:

A

A property management agreement

47
Q

Agriculture property in Florida is property that:

A

Has more than 10 acres

48
Q

A real estate professional needs a license because:

A

He has expert information on real estate that an average layperson does not have

49
Q

Local communities regulate real estate by:

A

Creating zoning laws

50
Q

Putting together two or more parcels of land to make a large piece is called:

A

Assemblage

51
Q

A home that is specially built for a buyer, using his blueprints is called:

A

A custom home

52
Q

Which is not commonly an area of federal government interference in real property:

A

Zoning laws

53
Q

What are the common areas of local government interference in real property?

A

Zoning laws
Occupancy permits
Taxation of real property
Business permits for real estate professionals

54
Q

What are the common areas of state government interference in real property?

A

Recording of deed, transfers of property

Estate taxes and rules regarding inheritance

55
Q

What are the common areas of federal government interference in real property?

A

Federal agencies (HUD, FHA, VA)
Laws (Federal Fair Housing, RESPA, Truth in Lending Act)
Taking of land for National parks, wildlife, and wetland areas
Environmental rules and regulations
Inheritance taxes

56
Q

Dedication most nearly means:

A

Giving private land for public use

57
Q

In Florida, there is a demand for property management services due to the large amount of:

A

Absentee owners

58
Q

The Florida Real Estate Appraisal Board (FREAB) is headquartered in Orlando and consists of how many members?

A

9 members

59
Q

One example of a Loan Originator would be a:

A

Seller who finances more than hone home in a two year period

Real Estate (20 decks)

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